DILG allows insurance companies to transact business sans permits

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THE Department of Interior and Local Government (DILG) has reminded all local government units (LGUs) to follow the law that allows duly-licensed insurance companies to transact business anywhere in the country even without permits.

In a statement on Saturday, Catalino Cuy, DILG Officer-in-charge and undersecretary, cited Republic Act no. 10607 or “An Act Strengthening the Insurance Industry,” which states that insurance companies, with a valid Certificate of Authority issued by the Insurance Commissioner, should not be hindered from doing business transactions by LGUs.

“We would like to continue to streamline business processes at the local levels that is why our LGUs must always foster a business-friendly environment,” said Cuy.

“We therefore advise LGUs to honor the Certificate of Authority issued to insurance companies because it is their passport [in]doing business anywhere in the country,” he added.


Cuy emphasized that any local legislator imposing restrictions on any insurance company with a valid company certificate shall be deemed “null and void.”

According to Section 193 of RA 10607, no insurance company that is issued with a valid certificate to transact their businesses anywhere in the country by the insurance commissioner, “shall be barred, prevented, or disenfranchised” from issuing any insurance policy or from transacting any insurance business.

“Any local ordinance or [LGU] regulatory issuance imposing such restriction or disenfranchisement on any insurance company shall be deemed null and void ab initio,” it stated.

Cuy has advised this directive to all local chief executives or to abide with the provision when issuing business permits to insurance companies.

Besides mayors, Cuy also directed all provincial governors, vice governors, the Autonomous Region in Muslim Mindanao Regional Governor and DILG regional directors to disseminate the memorandum circular to all LGUs to strictly comply with the order within their respective jurisdictions.

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